order_10795_19559
kim woods
order_10795_19683.pptxMidway Company Performance Summary
Student Name
College
Cover page
1
Overview
Strategy used was broad differentiation
Focused on both segments
We adopted broad differentiation strategy from the start.
We focused on both segments
2
Our Product
Low Segment (Primary segment)/High tech segment products
ABLE and A_Bake
Units sold for ABLE: 973
Units sold for A_Bake: 59
Performance: ABLE= 7.4
A_Bake= 5.3
Size: ABLE= 12.5
A_Bake= 14.7
Our management team limited its attention to fewer or one segment that can be served better and use it to influence other markets.
However, about 60% of the market came from the low segment. We had to balance this by producing enough amounts.
We therefore focused on the low and high segments. In one of the segments we reduced the age and improved the product positioning. MTBF reliability was held steady. For example, in the first round, ABLE’s performance was increased by 0.8 and size reduced by 1.0.
3
Production analysis
Able
Capacity: 950
Units sold were 973
Price was $34.00
Automation: 3.0
MTBF: 14000
A_Bake
Capacity: 30
Units sold were 59
Price was $32.80
MTBF: 19600
Automation: 1.8
Focused on 8 weeks of inventory.
We also planned for downside and upside since the competitors were getting the sales in cases that we could not meet demand.
In this analysis, the schedule for production rounds had a comprehensive plan for maximum of 8 inventory weeks. This meant that we ensure enough inventories on hand to help in meeting inventory for 8 weeks and beyond the forecasts of the sales. This was about 15% cushion for inventory
i.e. 8/52 = 0.15
4
Financial performance
Short term loan acquired.
Investments were financed by equity in plant and automation sectors.
Expenses paid through issuing long term loans
No dividends paid yet.
We highly avoided liquidity crisis.
Our financial policies saw us better our profits. We also acquire short term loans to pay for our expenses.
Automation and plant sectors were financed with equity.
5
Market Share
Able
Low tech segment: 11.4%
High tech: 0.9%
A_Bake
Low tech: 0.7%
High tech: 0.4%
Final remarks
Good profits and ROE.
Financial decisions reduced the sales and promo budgets.
Able product had awareness in both segments
Training hours and fee were allocated.
Final remarks to show where our company stands in this midway report in terms of ROE, ROS and net profits.
7
